The following information is true and accurate at the time of publication.
November 6, 2003
BERTELSMANN AG AND SONY CORPORATION
AGREE TO FORM JOINT MUSIC GROUP
The international media and entertainment
companies Bertelsmann AG and Sony Corporation today announced
that they have signed a non-binding letter of intent to
form a jointly owned recorded music company to be called
Sony BMG. The company will be 50% owned by Bertelsmann and
50% owned by Sony.
The joint venture of BMG and Sony Music Entertainment will
combine their recorded music businesses. The new company
would not include the companies' music publishing, physical
distribution and manufacturing businesses.
Rolf Schmidt-Holtz, currently Chairman and Chief Executive
Officer of BMG, would serve as Chairman of the Board of
the new joint venture. The Board of Directors of the new
company would be made up of an equal number of representatives
from Sony and Bertelsmann.
Andrew Lack, Chairman and Chief Executive Officer of Sony
Music Entertainment, would be Chief Executive Officer. The
newly formed joint venture would include senior executives
from both music groups.
Consummation of the transaction remains subject to a number
of conditions, including approvals of the regulatory authorities
in the US and the European Union.
